Orange Cable TV Company, an Accrual Basis Taxpayer, Allows Its

Orange Cable TV Company, an accrual basis taxpayer, allows its customers to pay by the year in advance ($500 per year) , or two years in advance ($950) .In September 2017, the company collected the following amounts applicable to future services: $\begin{array}{lr}\text { October 2017-September } 2019 \text { services (two-year contracts) } & \$ 144,000 \\\text { October 2017-September } 2018 \text { services (one-year contracts) } & 128,000 \\\text { Total } & \$ 272,000\end{array}$
As a result of the above, Orange Cable should report as gross income:

A) $272,000 in 2017.
B) $128,000 in 2017.
C) $168,000 in 2018.
D) $222,000 in 2018.
E) None of these.